Refunds vs Exchanges vs Store Credit

ReturnMate supports multiple resolution options for returns. This guide explains each option, when to use them, and how to process them.

Resolution Options Overview

Refunds

Full Refunds

A full refund returns the entire item price to the customer:

1. Open the RMA after inspection
2. Click Process Refund
3. Confirm refund amount
4. Select refund method (original payment)
5. Click Issue Refund

📷

Refund Processing Screen

(Screenshot placeholder)

Partial Refunds

For items not in original condition or to cover restocking fees:

1. Open the RMA
2. Click Process Refund
3. Adjust the refund amount
4. Add reason for deduction
5. Issue the partial refund

Refund Deductions

Common deductions include:

Where Refunds Go

Refunds are processed to:

• Shopify Payments - Automatic via Shopify API
• PayPal - Automatic via PayPal API
• Other Gateways - May require manual processing

Refund Timeline

• Processing: 1-2 business days
• Credit Card: 3-5 business days to appear
• Debit Card: 5-10 business days
• PayPal: 3-5 business days

Exchanges

Simple Exchanges

Same product, different variant (size, colour):

1. Open the RMA
2. Click Process Exchange
3. Select the replacement variant
4. Confirm shipping address
5. Create exchange shipment

Value Exchanges

Different product of similar value:

1. Open the RMA
2. Click Process Exchange
3. Search for replacement product
4. If prices differ:
   • Higher value: Charge difference
   • Lower value: Refund difference or offer credit
5. Complete the exchange

Exchange Workflow

Return Received → Inspected → Exchange Created → Shipped → Delivered

Exchange Inventory

When processing an exchange:

1. Returned item is added back to inventory (if resaleable)
2. Exchange item is allocated from inventory
3. Both transactions are logged

Exchange Shipping

Configure who pays for exchange shipping:

• Free Exchange Shipping - Merchant pays
• Customer Pays - Deduct from refund or charge
• Condition-Based - Free if merchant fault, paid if customer preference

Store Credit

When to Offer Store Credit

Store credit is ideal when:

• Customer prefers credit over refund
• As a goodwill gesture
• To encourage future purchases
• For returns outside normal policy

Issuing Store Credit

1. Open the RMA
2. Click Issue Store Credit
3. Enter credit amount
4. Add optional expiry date
5. Customer receives credit code via email

Store Credit in Shopify

ReturnMate creates store credit through Shopify:

• Credit appears in customer's account
• Automatically applies at checkout
• Trackable in Shopify admin

Credit Expiry

Configure credit expiry in Settings:

• No expiry (recommended for Australia)
• 12 months
• 24 months
• Custom period

Choosing the Right Resolution

Decision Framework

Choose Refund when:

• Customer explicitly requests refund
• Item is defective/not as described
• Your return policy guarantees refunds

Choose Exchange when:

• Customer wants different size/colour
• You want to retain the sale
• Item is out of return window but you're offering goodwill

Choose Store Credit when:

• Customer prefers flexibility
• You want to encourage repeat business
• As compromise for grey-area returns

Customer Preference

Let customers indicate preference during return request:

1. In return portal, show resolution options
2. Customer selects preferred outcome
3. Staff can see preference in RMA details
4. Process accordingly

Resolution Configuration

Default Resolutions

Configure default resolution by return reason:

Automation Rules

Automate resolutions based on conditions:

If:
  - Inspection grade = A
  - Return reason = "Changed mind"
  - Customer selected "Store Credit"
Then:
  - Auto-issue store credit
  - Skip manual approval

Processing Multiple Items

For RMAs with multiple items:

• Each item can have different resolution
• Mix of refunds, exchanges, and credits
• Total processed amount shown

Example:

• Item 1: Refund $50
• Item 2: Exchange for different size
• Item 3: Store credit $30

Reporting

Track resolution metrics:

Related Articles

• Returns Workflow
• Return Exceptions
• SLA & Timelines